JAKARTA. The coal reference price (HBA) of October 2021 had hit USD 161.63 per ton, increasing 7.73% from USD 150.03 per ton in September 2021 due to increased export demands.

Agung Pribadi, Head of Communication Bureau of the Ministry of Energy and Mineral Resources (ESDM), believed that the HBA growth in October 2021 stems from coal demands from China. Indeed, China’s own coal supply could barely provide for its domestic needs.

“Currently, the need for coals (in China) is escalating as the coals are utilised in power plants, but the demands had exceeded the domestic coal supply,” Pribadi confirmed in the official announcement.

Moreover, the coal demands from South Korea and Europe are noticeably higher. This escalation is a result of how expensive natural gas is in both regions.

For the record, HBA of October 2021 is determined after considering the average price observed in Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt’s 5900 back in September 2021. As usual, this month’s coal reference price would be used for setting the coal price during the free on board sales at the handover point. (KR/ZH)